DailyTrends.com Company of the Week: CVF Tech (Revisited)
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I must agree that in the US, a single person can purchase stock into 25,000 different entities. Out of all these companies that one can invest in, I personally can't find one more compelling to look at than CVF Tech (CNVT).
The assets of CVF alone are worth more than three times what its stock is currently trading.
Its NAV (Net Asset Value), which means the dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding is .85 cents. I think that the price is substantially higher than that, and I will prove it.
But first, here is the summary of what the company does.
CVF is a company that invests in other companies similar to a BDC (Business Development Company).
It currently owns large portions of four separate and very niche businesses:
- Biorem: Makes bio-filtration products that control and reduce air pollution and odor removal (mostly sewage systems) http://www.biorem.ca
- Gemprint: Manufactures machines that uniquely identify diamonds and other precious gems using reflective laser light. http://www.gemprint.com
- SRE Controls: Specifically makes software-driven electronic controllers for electric vehicles and fuel cells http://www.srecontrols.com
- Ecoval: Markets biodegradable, organic, non-toxic pesticides and fertilizers under the name "Nature's Glory"
Since CVF is already in the fund and I personally own it, I have spoken with the CEO and Founder Jeff Dreben on countless occasions to see if I can get a better understanding of their investments.
The most important bit of news that I can give all of you is that Biorem is now public. As of the closing price on Friday (last week), the stake CVF has in the company is worth more than nine million dollars alone. Here is the latest stock quote from Biorem (BRM.V): http://finance.yahoo.com/q?s=brm.v&d=v1
What makes me scratch my head everyday when I look at CVF stock, is that they have one stake that is worth twice what Wall Street is currently valuing the company. The reason I personally own a lot of shares is because of the potential of Biorem. Here is a Company out of Ontario, Canada that has signed $2.2 million worth of contracts and recently had a press release that went through one year and out the other for all investors with the exception of a few (including me).
Biorem makes bio-filters that eliminate the smell of feces and contaminants in the environment. They are the largest bio-filter company in North America with 100 installations already and counting.
Now they are moving into something called VOC (Volatile Organic Compounds), that come out of waste air streams. Their first installation happened last week, and is already saving the company who installed it $20,000 a month in natural gas. Did I mention that it only costs $175,000 for that company? The cost savings are tremendous and could not come at a better time (energy costs have soared).
All in all, I am not even talking about their other businesses.
This stock is worth at least .70 cents today because of Biorem (BRM). That is my price target for the stock.
Chris Lahiji will be available to take your questions until Thursday, February 24. Please use the form below to submit your questions.